Calculated Cost for 700,000 Daily Android Activations Is $3.65 Billion According to Oracle

January 19, 2012
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An update on the Java-related patent infringement case Oracle filed against Google over its Android OS, Oracle has shown a monetary estimate on the damages they may be about to claim. Considering the fact that there are 700,000 daily Android activations, Oracle may be looking at earning close to a billion dollars. Even though Oracle has not provided a source for its estimate, they have calculated that Google is now generating an annual revenue of $3.65 billion. Adding to that, Florian Mueller, an intellectual property activist, stated on his FOSS Patents blog that this figure was generated from the assumption of annual advertising revenues amounting to $14 for every Android user.

‘While this case awaits trial, more than 700,000 Android-based devices are activated each day, all fundamentally built around the copyrighted Java APIs and the enhanced performance enabled by Oracle’s patents,’ Oracle said. ‘Each day’s worth of activations likely generates approximately $10 million in annual mobile advertising revenue for Google.’

In 2010, Oracle filed a case against Google for suspecting the company for ‘approximately one-third of Android’s Application Programmer Interface (API) packages’ were a ‘derivative of Oracle’s copyrighted Java API packages.’ In the court filings submitted last June 2011, Oracle wanted Google to pay between $0.9 billion and $1.4 billion upfront for the damage caused from patent infringement. In addition to this, Oracle wanted 15% of all the generated income from Android mobile advertising.

The trial has been initially slated to start in October, however, Judge William Alsup has postponed this date because of scheduling conflicts with another major criminal trial. Just this week, Oracle requested the court to sever and retain for another nine months, hoping that the case will go to trial by ‘the first possible date in the winter or spring of 2012.’

By any means, the $3.65 billion is already Oracle’s way of doing justice compared to the $6.1 billion in damages previously claimed. However, the first sum does not actually reflect the full value of Android.

“This revenue does not even include all the other value Android generates for Google, ranging from Android Market revenue, to other Android-related services, to ensuring that Google will not be locked out of the mobile business, to lucrative relationships with manufacturers of myriad devices on which Android can and does run, to the inordinately valuable access Android provides to customers for its new social network service, Google+.” Oracle said.

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